NECI brings challenge to Labour Court recommendation
On Tuesday, the 26th of May, 2020, NECI with our legal team of Ms Helen Callanan SC, David O'Brien BL and Harry Carpendale Solicitor of HG Carpendale & Co attended the inaugural Virtual High Court hearing with Mr Justice Garrett Simons presiding. NECI brought a challenge to the Labour Court concerning their disastrous recommendation in 2019 to the Minister Pat Breen.
The recommendation, a sectoral employment order, would see smaller Irish contractors put out of business if unable to provide their employees with the same pay conditions and benefits as much larger firms. This is not a move to level the playing field or improve our industry – we believe it is designed to cull it.
The High Court has subsequently stayed parts of the recommendation, including that relating to pension and sick pay conditions as outline in the SEO. However, they would not stay on our objects to the 2.7% pay rise, working time, and dispute procedures.
The hearing took place in a virtual court room in order to adhere to health and safety measures as laid out by the HSE.
We stated there was a duty to act in compliance with the Constitution and natural justice and that the Labour Court should have provided clear reasons for its decisions.
Our claims were denied by the Labour Court, the Minister, Ireland and the Attorney General.
We also stated that the Labour Court and the Minister failed to properly follow the procedures laid out in the legislation of 2015. In issuing the SEO, the Labour Court worked it out in a way that meant “NECI don’t count because we don’t have sufficient employees.”
Helen Callanan said that part of the Industrial Relations (Amendment) Act of 2015 replaced the “old registered employment agreements” with sectoral employment orders.
“This is a very dangerous situation for employers and employees and little did we know that the country would be in the middle of a shutdown and these employers cannot reduce wages”, she said.
It must be noted that other industries, including law and business, have lowered remuneration in order to address today’s climate of uncertainty.
The Counsel said that an employer who does not comply with the SEO and fails to pay their employees to the standards outlined in it, they can be jailed for up to six months following enforcement proceedings which will be taken in the district court.
The only other option being – pay the price and go out of business.
The High Court hearing has sat for four days this week and will continue next Thursday, 4th June and Friday, 5th June.
We’ll be keeping you all updated as we continue to fight this malign order, and you can stay up-to-date here on NECI.ie.
The Irish Times: https://www.irishtimes.com/business/construction/electrical-contractors-fear-closure-under-new-pay-law-1.4263118
The Irish Independent: https://www.pressreader.com/ireland/irish-independent/20200527/282183653259493